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5. A Look at Japan. Page 85. Geography. Page 85. Economy and Business. Dependent on imported raw materials and fossil fuels Positive trade balance Unrestricted flow of capital and financial transactions Unique to Japanese business—the Keiretsu. Page 87. Japan’s National Debt. - PowerPoint PPT Presentation
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Slide 5-1
ASIA/PACIFIC & INTERNATIONAL REAL ESTATE
5. A Look at Japan
Page 85
Slide 5-2
Geography
Page 85
Slide 5-3
Economy and Business
Dependent on imported raw materials and fossil fuels
Positive trade balance
Unrestricted flow of capital and financial transactions
Unique to Japanese business—the Keiretsu
Page 87
Slide 5-4
Japan’s National Debt
200 percent of its GDP
Offset by trade surplus, foreign currency portfolio
Investor confidence
Difficult reckoning in 10–20 years? Aging population Shrinking workforce Cost of debt service Waning export
competitiveness
Page 88
Slide 5-5
2011 Disaster
Human tragedyLost families, homes, and livelihoods363,000 buildings were completely or
partially destroyed Damage to infrastructureMost expensive natural disaster in historyA decade to rebuildOpposition to nuclear power plants
Page 88
Slide 5-6
Land Lease
Scarcity of land
Many small landholders , small land parcels
Land lease system
Landowner maintains title to the land
Leaseholder receives the right to construct and occupy a building on it
Page 85
Slide 5-7
Can Foreigners Own Real Estate?
No restrictions or conditions
No government permission or approval
Free flow of capital
May establish a operate a business
But….Mortgage financing obstacles
Page 90
Slide 5-8
Secondhand Housing
Home values depreciate
Sell at deep discounts
25-year old home has no value
Most are rebuilt after 25–30 years
No value in quality construction
Japanese favor new
Previous owner’s bad fortune?
Page 91
Slide 5-9
Homeownership Trends
Homeownership rate—61%
Small living spaces, condos—45 m2, single family homes—121 m2
land prices a barometer for new home prices
1 tsubo = two standard tatami mats(3.3 square meters , 35.5 square feet)
Page 92
Slide 5-10
Rental Property
Pre-landlord, expensive process5-7 months rentKey money—thank you for privilege of
renting Direct transfer of rent payments from the
tenant’s bank accountForeign Resident Registration Card
Page 93
Slide 5-11
Real Estate Professionals
Real estate business licensing
Sales agent licensing
Commission rates are fixed by the National Ministry of Land, Infrastructure, and Transportation
Page 85
Slide 5-12
Office Vacancy Rates
Page 94
Existing Buildings
New Buildings
Slide 5-13
Doing Business in JapanBeyond the Basics
Names
Initial Contact and Introductions
Intermediaries
Business Relationships
Business Cards
Meetings
Demeanor
Negotiations and Decisions
Social Etiquette
A Few Taboos
Page 98-102
Slide 5-14
Building Relationships
Amae
Hada to hada
Nemawashi
Tatemae and honne
Page 99
